1099k for multiple Paypal stealth accounts for Ebay

[Inter1010]

Let's say that I do 500K in sales on Ebay with thousands of orders shipped, and I use my business Paypal account and receive my 1099k annually. Everything is normal here.

What happens if I create multiple stealth/dummy Paypal accounts and not include my SS/EIN since it will not match the names on the account BUT I stay close to only 2k-3k sales, and around 100 orders a year? Is it guaranteed that Ebay will not ask for EIN if I have my numbers really now?

And what happens if I start transferring this money to my personal account? Is it true that Paypal tries to flag users who constantly change their Paypal emails on their listings?

[phaz0rz]

What happens if I create multiple stealth/dummy Paypal accounts and not include my SS/EIN since it will not match the names on the account BUT I stay close to only 2k-3k sales, and around 100 orders a year? Is it guaranteed that Ebay will not ask for EIN if I have my numbers really now?

Ebay never asks for your EIN but you can give it to them if you want to. Paypal is the one who requires your EIN. They start asking for it around 150 sales, then again around 180 sales, and then you can't receive any more payments until next year if you hit 200 sales without giving them a tax ID.

For what it's worth you can have multiple EIN accounts (which is what I thought your post was about). We have 3 and they've all had 1099k's sent out for multiple years with "stealth" addresses on the 1099. The address on the 1099 doesn't matter, especially for a single member LLC EIN. Because the profits from your 1099 are passed to your personal tax return - you don't file a separate tax return for the business.

If you're going to be running a dozen non-tax ID accounts, it's recommended you report that income on a 1099 you do yourself. Otherwise you could get audited when someone at the IRS notices your profit margin is significantly lower than others in the same line of business

And what happens if I start transferring this money to my personal account? Is it true that Paypal tries to flag users who constantly change their Paypal emails on their listings?

I don't understand what you mean by the first question here. Like transferring money from stealth accounts to your personal bank account? That's fine.

You DO NOT change the Paypal linked to your eBay account every time a Paypal gets tax limited. It will work short-term but Paypal will very quickly link and limit all accounts used on that eBay account. eBay accounts all have internal ID numbers (can be seen on any eBay fees invoice) which Paypal sees and will link you by.

1 Paypal - 1 eBay is the only safe way to sell.

[Inter1010]

Originally Posted by phaz0rz

Ebay never asks for your EIN but you can give it to them if you want to. Paypal is the one who requires your EIN. They start asking for it around 150 sales, then again around 180 sales, and then you can't receive any more payments until next year if you hit 200 sales without giving them a tax ID.

For what it's worth you can have multiple EIN accounts (which is what I thought your post was about). We have 3 and they've all had 1099k's sent out for multiple years with "stealth" addresses on the 1099. The address on the 1099 doesn't matter, especially for a single member LLC EIN. Because the profits from your 1099 are passed to your personal tax return - you don't file a separate tax return for the business.

If you're going to be running a dozen non-tax ID accounts, it's recommended you report that income on a 1099 you do yourself. Otherwise you could get audited when someone at the IRS notices your profit margin is significantly lower than others in the same line of business

I don't understand what you mean by the first question here. Like transferring money from stealth accounts to your personal bank account? That's fine.

You DO NOT change the Paypal linked to your eBay account every time a Paypal gets tax limited. It will work short-term but Paypal will very quickly link and limit all accounts used on that eBay account. eBay accounts all have internal ID numbers (can be seen on any eBay fees invoice) which Paypal sees and will link you by.

1 Paypal - 1 eBay is the only safe way to sell.

So, we are not allowed to use different Paypal addresses on listings even though my main Paypal account is well over the threshold of 20k / 200 sales? And if not, what happens next? Banned accounts?

[Inter1010]

Basically, my main Paypal I use for Ebay does over 500,000k sales a year and close to 30,000 transactions. I can't just create a stealth Paypal account and use it on some of my listings?